April 2017

Found 1 blog entry for April 2017.

With the sale of Formula 1 to Liberty Media Corporation, we see a lot of news articles speaking to the Formula 1 Enterprise Value of $8 billion, with the equity value being $4.4 Billion.

What is the difference between Enterprise Value and Equity Value you ask?

Equity Value is the simplest form is the total outstanding shares of a company (Market Cap) and can be calculated using the current value per each share outstanding.

As an example, if “Example Company Ltd” had 10,000 outstanding shares with a share price of $10.00, the Equity Value of the company would be $100,000.

The equity value alone typically will not give you an accurate representation of the TRUE value of a company.

Enterprise Value will represent the market value of the

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